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Federal Reserve Chairman Ben Bernanke will testify today before the House Financial Services Committee, following up on the grim assessment of the economy he delivered to lawmakers on Tuesday. Bernanke warned that inflation "seems likely to move temporarily higher in the near term," but he cautioned that weak economic growth will make it hard for the Fed to fight inflation with higher interest rates. "The economy continues to face numerous difficulties, including ongoing strains in financial markets, declining housing prices, a softening labor market and rising prices of oil, food and other commodities," Bernanke said.

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House Republicans on Wednesday urged Federal Reserve Board Chairman Ben Bernanke to avoid taking any more action to stimulate the economy. Republicans said that employing more stimulus action could make financial problems worse and speed up the pace of inflation.

In a newspaper opinion piece, Federal Reserve Chairman Ben Bernanke explained that the central bank has been pouring money into the U.S. economy to stimulate growth, but it will be able to increase borrowing costs to curb inflation when necessary. "Accommodative policies will likely be warranted for an extended period," Bernanke wrote. "At some point, however, as economic recovery takes hold, we will need to tighten monetary policy to prevent the emergence of an inflation problem down the road."

In a newspaper opinion piece, Federal Reserve Chairman Ben Bernanke explained that the central bank has been pouring money into the economy to stimulate growth, but it will be able to increase borrowing costs to curb inflation when necessary. "Accommodative policies will likely be warranted for an extended period," Bernanke wrote. "At some point, however, as economic recovery takes hold, we will need to tighten monetary policy to prevent the emergence of an inflation problem down the road."

Ben Bernanke, chairman of the Federal Reserve, has suggested he may cut interest rates once again in an attempt to boost the sluggish U.S. economy. Many expect that will push the dollar down even further and cause inflation to swell.

Ben Bernanke, chairman of the Federal Reserve, has suggested the board may cut interest rates once again in an attempt to boost the sluggish U.S. economy. Many expect that will push the dollar down even further and cause inflation to swell.